Finance and Credit

Mechanisms to boost the investment activity of the Russian business sector under borrowing constraints in foreign markets

Vol. 24, Iss. 8, AUGUST 2018

Received: 4 April 2018

Received in revised form: 13 June 2018

Accepted: 27 June 2018

Available online: 29 August 2018


JEL Classification: E22, F21, G18

Pages: 1859–1873

Petrenko I.A. Peoples' Friendship University of Russia, Moscow, Russian Federation

Importance The paper analyzes the mechanisms to boost the investment activity of the Russian business sector under restricted borrowings in foreign markets.
Objectives The aim is to address comprehensively the investment activity of the Russian business sector at the present stage of development, identify key problems having a negative impact on investment activity, formulate mechanisms to encourage investment.
Methods The methodology rests on general and special methods of scientific research, like empirical study (comparison, data gathering and analysis), integrated approach, comparative study, synthesis of theoretical and practical material.
Results The paper analyzes the current state of the country's business sector in the system of investment activity. Due to economic sanctions of western countries, the Russian business is characterized by a loss of a channel to support the investment process with resources from global financial markets, a decline in support to investment projects by Russian banks, and a reduction in government funding. Under limited borrowings in external markets, the key task is to search for prospects to bolster the sector.
Conclusions The chilling effect of economic sanctions' consequences necessitates guidelines to resume investment in fixed assets and mechanisms to boost the investment activity in the Russian business sector.

Keywords: fixed assets, investment activity, business sector, external borrowing, incentive mechanism


  1. Filatova I.V. [Sanctions as a major factor of outflow of the capital from Russia]. Vestnik ekonomicheskoi bezopasnosti = Vestnik of Economic Security, 2015, no. 1, pp. 58–59. (In Russ.)
  2. Platonova I.N., Gurova I.P. [Financial sanctions against Russia: The range of application]. Rossiiskii vneshneekonomicheskii vestnik = Russian Foreign Economic Journal, 2015, no. 5, pp. 49–62. (In Russ.)
  3. Larin S.N., Khrustalev O.E., Stebenyaeva T.V. [System analysis of threats in economic security of Russia in terms of sectoral and financial sanctions on the example of oil and gas sector]. Politematicheskii setevoi elektronnyi nauchnyi zhurnal Kubanskogo gosudarstvennogo agrarnogo universiteta, 2017, no. 127, pp. 767–780. (In Russ.) URL: Link
  4. Shkurat M.V. [Classical political economy of the role of the enterprise sector in the economy]. Biznes v zakone. Ekonomiko-yuridicheskii zhurnal = Business in Law, 2014, no. 2, pp. 101–104. (In Russ.)
  5. Bulatova A.I., Abelguzin N.R. [Influence of sanctions on the Russian economy]. Aktual'nye problemy ekonomiki i prava = Actual Problems of Economics and Law, 2015, no.3, pp. 26–37. (In Russ.)
  6. Klimova N.V., Murashkina S.Yu. [The impact of the sanctions on the investment climate and industrial policy of Russia]. Politematicheskii setevoi elektronnyi nauchnyi zhurnal Kubanskogo gosudarstvennogo agrarnogo universiteta, 2015, no. 106, pp. 162–174. (In Russ.) URL: Link
  7. Molchanov I.N. [Economic Sanctions and Russia's Financial System]. Finansy: Teoriya i Praktika = Finance: Theory and Practice, 2017, vol. 21, no. 5, pp. 50–61. (In Russ.)
  8. Kruzhkova I.I., Shabannikova N.N., Mikhailova Yu.L. [Analysis of investments in fixed capital and directions of investment activity in Russia]. Vestnik Voronezhskogo gosudarstvennogo universiteta. Seriya: Ekonomika i upravlenie = Proceedings of Voronezh State University. Series: Economics and Management, 2017, no. 3, pp. 39–44. (In Russ.)
  9. Mukhina I.V. [Financing- and development-related problems of small-sized enterprises in Russia]. Rossiiskoe predprinimatel'stvo = Russian Journal of Entrepreneurship, 2015, vol. 16, no. 3, pp. 485–496. (In Russ.)
  10. Beksultanova A.I., Yalmaev R.A., Eskiev M.A. [Limitations and problems of small business development in Russia]. Molodoi uchenyi = Young Scientist, 2015, no. 23, pp. 481–483. (In Russ.)
  11. Berezinskaya O., Khromov M. [Sources of financing capital investment: Period of pause]. Ekonomicheskoe razvitie Rossii = Russian Economic Developments, 2016, vol. 23, no. 8, pp. 10–14. (In Russ.)
  12. Levina E.I. [Mechanisms of the State support of small and average business in foreign countries]. Sotsial'no-ekonomicheskie yavleniya i protsessy = Socio-Economic Phenomena and Processes, 2009, no. 2, pp. 79–89. (In Russ.)
  13. Zabolotskaya V.V., Khut N.A. [The comparative analysis of the State support of small and medium-sized businesses in Russia and abroad]. Teoriya i praktika obshchestvennogo razvitiya = Theory and Practice of Social Development, 2015, no. 10, pp. 46–49. (In Russ.)
  14. Lukin E.V. [Variants of Adjustments to Russian Economic Policy]. Voprosy territorial'nogo razvitiya = Territorial Development Issues, 2016, no. 5, pp. 1. (In Russ.)
  15. Mau V. [Anti-crisis measures or structural reforms: Russia's economic policy in 2015]. Voprosy Ekonomiki, 2016, no. 2, pp. 5–33. (In Russ.)
  16. Shin G., Choi S.-W., Luo S. Do economic sanctions impair target economies? International Political Science Review, 2016, vol. 37, iss. 4, pp. 485–499. URL: Link
  17. Morozov V.A. [Foreign experience in supporting the small business]. Rossiiskoe predprinimatel'stvo = Russian Journal of Entrepreneurship, 2002, vol. 3, no. 10, pp. 99–104. (In Russ.)

View all articles of issue


ISSN 2311-8709 (Online)
ISSN 2071-4688 (Print)

Journal current issue

Vol. 24, Iss. 10
October 2018